A federal appeals court unanimously upheld the dismissal of a lawsuit accusing the LDS Church of fraud over its use of tithing funds, ruling that the First Amendment bars courts from adjudicating religious financial decisions. The three-judge panel found that examining how a church uses donated funds would require impermissible inquiry into religious doctrine.

The lawsuit, filed by a former member, alleged the Church misled donors about tithing's use by building a massive investment portfolio rather than spending funds on charitable purposes. Lower courts dismissed the case on religious liberty grounds, and the appeals panel affirmed that reasoning.

This is the second tithing-fraud case dismissed on First Amendment grounds. Legal experts say the rulings create a high bar for any future litigation challenging how religious organizations manage donations.